MSU MGT 325 QUESTIONS | VERIFIED ACCURATE
ANSWERS | 2026
Module 1
The management of people through the application of knowledge from the field of
organizational behavior is a primary means through which competitive advantage can
be created and sustained. - Answers -True
Organizational behavior is a field of study that endeavors to understand, explain,
predict, and change human behavior as it occurs in the organizational context. -
Answers -True
The field of organizational behavior focuses on observable behaviors, such as talking in
a meeting, running production equipment, or writing a report but does not also consider
internal states, such as thinking, perceiving, and deciding. - Answers -false
Micro organizational behavior is concerned mainly with the behaviors of individuals
working together in teams. - Answers -false
Macro organizational behavior examines questions like "How do differences in ability
affect employee productivity?" and "How do individual employees' perceptions influence
workplace behavior?" - Answers -false
"Empowerment" is the delegation to non-managers of the authority to make significant
decisions on their jobs. - Answers -true
The "moral rights" approach to ethics suggests that the appropriateness of the use of
power should be judged in terms of the consequences of this use. - Answers -false
Diagnosis is a procedure in which managers gather information about a troublesome
situation and try to summarize it in a problem statement. - Answers -true
Solution is the process of identifying ways to resolve the problem identified during the
evaluation phase of the process of problem solving. - Answers -false
Managers prescribing solutions must resist the urge to satisfice—to choose the first
alternative that seems workable. - Answers -true
In the action stage of problem solving, managers must first stipulate the specific
activities they believe are needed to solve a particular problem and then oversee the
implementation of these activities. - Answers -true
,Problem solving concludes with evaluation, the process of determining whether actions
taken to solve the problem had the intended effect. - Answers -true
Perception is the process of using our five senses to experience the world around us. -
Answers -true
In the attention stage of perception, incoming information is filtered so that some enters
the perceptual system but other information does not. - Answers -true
In the organization stage of perception, perceivers simplify and organize incoming
sensory data. - Answers -true
Scripts are sequences of action like "preparing a written report." - Answers -true
Prototypes are cognitive structures that enable perceivers to chunk information about
people's characteristics. - Answers -true
Availability bias means that things easily recalled are judged less likely to happen than
things that are hard to recall. - Answers -false
Hindsight bias occurs when people feel that they would have predicted past outcomes
more accurately than they actually could have at the time; sometimes we call this "20/20
hindsight." - Answers -true
Random sampling reduces the likelihood that perceptual observations are accurate. -
Answers -false
The accuracy of perceptions can be improved by obtaining observations from different
people and different perspectives. - Answers -true
Observers tend to ignore information that does not match their expectations, so it is a
good idea to seek out information that is inconsistent with one's current beliefs. -
Answers -true
The rational decision-making model assumes that decision makers will try to maximize
their individual economic outcomes. - Answers -true
The loss aversion bias affects decision making more strongly than the preference for
non-risky situations. - Answers -true
Escalation of commitment occurs when people invest additional resources in a losing
course of action in order to justify earlier decisions to invest. - Answers -true
The complexity of real-world decision situations increases the ability to make rational
decisions. - Answers -false
, Bounded discretion means that the list of alternatives generated by a decision maker is
usually unrestricted in scope. - Answers -false
The administrative decision making model outlines what managers should do, as
opposed to what they actually do. - Answers -false
Satisficing, or settling for the first satisfactory alternative, is an important part of the
administrative decision-making model. - Answers -true
Computerized expert systems fail as a decision aid because they introduce unneeded
complexities. - Answers -false
Loose coupling can reduce the complexity of planning. - Answers -true
Contingency planning addresses complexity by trying to anticipate unforeseen
problems. - Answers -true
Creative decisions consist of choices that are new and unusual but effective. - Answers
-true
Preparation, the first step in the creative process, requires assembling materials likely to
be associated with the creative decision. - Answers -true
Incubation is consistent with other models of decision making in focusing on making
immediate decisions. - Answers -false
Verification occurs when the solution formulated in the insight stage is tested to
determine its true usefulness. - Answers -true
A modest relationship exists between creativity and general cognitive ability, or
intelligence, and in particular with reasoning and deduction - Answers -true
A creative person is unusually persistent and has a high energy level. - Answers -true
Providing specific and difficult goals and firm deadlines seems to stimulate creative
achievement as long as the deadlines are realistic. - Answers -true
Organizations that emphasize following rules and procedures and that punish failure are
likely to support high levels of creativity. - Answers -false
Module 2 Review Questions - Answers -Module 2 Review Questions
A stereotype presumes that some person possesses certain individual characteristics
based on their sex or membership in a racial, ethnic, or age group. - Answers -True
ANSWERS | 2026
Module 1
The management of people through the application of knowledge from the field of
organizational behavior is a primary means through which competitive advantage can
be created and sustained. - Answers -True
Organizational behavior is a field of study that endeavors to understand, explain,
predict, and change human behavior as it occurs in the organizational context. -
Answers -True
The field of organizational behavior focuses on observable behaviors, such as talking in
a meeting, running production equipment, or writing a report but does not also consider
internal states, such as thinking, perceiving, and deciding. - Answers -false
Micro organizational behavior is concerned mainly with the behaviors of individuals
working together in teams. - Answers -false
Macro organizational behavior examines questions like "How do differences in ability
affect employee productivity?" and "How do individual employees' perceptions influence
workplace behavior?" - Answers -false
"Empowerment" is the delegation to non-managers of the authority to make significant
decisions on their jobs. - Answers -true
The "moral rights" approach to ethics suggests that the appropriateness of the use of
power should be judged in terms of the consequences of this use. - Answers -false
Diagnosis is a procedure in which managers gather information about a troublesome
situation and try to summarize it in a problem statement. - Answers -true
Solution is the process of identifying ways to resolve the problem identified during the
evaluation phase of the process of problem solving. - Answers -false
Managers prescribing solutions must resist the urge to satisfice—to choose the first
alternative that seems workable. - Answers -true
In the action stage of problem solving, managers must first stipulate the specific
activities they believe are needed to solve a particular problem and then oversee the
implementation of these activities. - Answers -true
,Problem solving concludes with evaluation, the process of determining whether actions
taken to solve the problem had the intended effect. - Answers -true
Perception is the process of using our five senses to experience the world around us. -
Answers -true
In the attention stage of perception, incoming information is filtered so that some enters
the perceptual system but other information does not. - Answers -true
In the organization stage of perception, perceivers simplify and organize incoming
sensory data. - Answers -true
Scripts are sequences of action like "preparing a written report." - Answers -true
Prototypes are cognitive structures that enable perceivers to chunk information about
people's characteristics. - Answers -true
Availability bias means that things easily recalled are judged less likely to happen than
things that are hard to recall. - Answers -false
Hindsight bias occurs when people feel that they would have predicted past outcomes
more accurately than they actually could have at the time; sometimes we call this "20/20
hindsight." - Answers -true
Random sampling reduces the likelihood that perceptual observations are accurate. -
Answers -false
The accuracy of perceptions can be improved by obtaining observations from different
people and different perspectives. - Answers -true
Observers tend to ignore information that does not match their expectations, so it is a
good idea to seek out information that is inconsistent with one's current beliefs. -
Answers -true
The rational decision-making model assumes that decision makers will try to maximize
their individual economic outcomes. - Answers -true
The loss aversion bias affects decision making more strongly than the preference for
non-risky situations. - Answers -true
Escalation of commitment occurs when people invest additional resources in a losing
course of action in order to justify earlier decisions to invest. - Answers -true
The complexity of real-world decision situations increases the ability to make rational
decisions. - Answers -false
, Bounded discretion means that the list of alternatives generated by a decision maker is
usually unrestricted in scope. - Answers -false
The administrative decision making model outlines what managers should do, as
opposed to what they actually do. - Answers -false
Satisficing, or settling for the first satisfactory alternative, is an important part of the
administrative decision-making model. - Answers -true
Computerized expert systems fail as a decision aid because they introduce unneeded
complexities. - Answers -false
Loose coupling can reduce the complexity of planning. - Answers -true
Contingency planning addresses complexity by trying to anticipate unforeseen
problems. - Answers -true
Creative decisions consist of choices that are new and unusual but effective. - Answers
-true
Preparation, the first step in the creative process, requires assembling materials likely to
be associated with the creative decision. - Answers -true
Incubation is consistent with other models of decision making in focusing on making
immediate decisions. - Answers -false
Verification occurs when the solution formulated in the insight stage is tested to
determine its true usefulness. - Answers -true
A modest relationship exists between creativity and general cognitive ability, or
intelligence, and in particular with reasoning and deduction - Answers -true
A creative person is unusually persistent and has a high energy level. - Answers -true
Providing specific and difficult goals and firm deadlines seems to stimulate creative
achievement as long as the deadlines are realistic. - Answers -true
Organizations that emphasize following rules and procedures and that punish failure are
likely to support high levels of creativity. - Answers -false
Module 2 Review Questions - Answers -Module 2 Review Questions
A stereotype presumes that some person possesses certain individual characteristics
based on their sex or membership in a racial, ethnic, or age group. - Answers -True
